11

SENIOR HIGH SCHOOL

FUNDAMENTALS OF ACCOUNTANCY,
BUSINESS & MANAGEMENT 1

Quarter 1 – Module 5

TYPES OF BUSINESS ACCORDING TO ACTIVITIES

ASIAN TECHNOLOGICAL SKILLS INSTITUTE, INC

Purok 2, Barangay Cobangbang
Daet, Camarines Norte

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Module 5 Types of Business According to Activities
 FUNDAMENTALS OF ACCOUNTANCY, BUSINESS, & MANAGEMENT 1
SENIOR HIGH SCHOOL (SPECIALIZED)
2nd Semester Quarter 3

Module 5: Types of Business According to Activities

INTRODUCTION

Welcome to this self-learning module: Types of Business According to Activities. In accomplishing this
learning material, you have to take first the pre-test, and you are tasked to study the learning activities and
perform the various practice tasks 1, 2 and 3. After doing so, you may take the post- test to determine the
knowledge and skills you gained from this lesson. To enhance your competence, you have also to
accomplish your assignment found in this module. Thank you and Goodluck!

CONTENT STANDARDS

The learners demonstrate an understanding of the types of business according to activities,

particularly:

• Service business
• Merchandising business
• Manufacturing business

PERFORMANCE STANDARDS

The learners shall be able to differentiate the types of business according to activities and make a
list of businesses in their community according to their activities.

OBJECTIVES

After completing the module, the learners shall be able to:

 Compare and contrast the types of business according to activities (ABM_FABM11-IIIb-13)

 Identify the advantages and business requirements of each type (ABM_FABM11-IIIb-14)

VOCABULARY LIST

To have a better understanding of the lesson presented in this module, you should be familiar with
the following terms/topics:

 Service Business
 Merchandising Business
 Manufacturing Business

LEARNING ACTIVITIES

To study:

Types of Business According to Activities

3 TYPES OF BUSINESS ORGANIZATIONS:

 Service Business

This type of business offers professional skills, advice and consultations.

Examples: barber shops and beauty parlors, repair shops, banks, accounting and law firms

 Merchandising Business

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Module 5 Types of Business According to Activities
 This type of business buys at wholesale and later sells the products at retail. They make a profit by
selling the merchandise or products at prices that are higher than their purchase costs. This type of business
is also known as "buy and sell".

Examples are: book stores, sari-sari stores, hardware stores

 Manufacturing Business

This type of business buys raw materials and uses them in making a new product, therefore
combining raw materials, labor and expenses into a product for sale later on.

Examples are: shoe manufacturing businesses, car manufacturing plants

Additional information:

There are businesses that may be classified under more than one type of business. A bakery, for
example, combines raw materials in making loaves of bread (manufacturing), sells hot pan de sal
(merchandising), and caters customers’ orders in small coffee table servings of ensaymada and hot coffee
(service).

REFERENCES

Joselito G. Florendo, et. al, (2016). Teaching Guide for Senior High School FUNDAMENTALS OF
ACCOUNTANCY, BUSINESS, AND MANAGEMENT 1. Commission on Higher Education. pp.28-31.

NAME: _____________________________________ GRADE&STRAND: _____________________________________

PRACTICE TASK 1

Direction: Answer the following:

1. Discuss briefly what Servicing Business is and provide examples.

________________________________________________________________________________________________________
________________________________________________________________________________________________________
________________________________________________________________________________________________________

PRACTICE TASK 2

Direction: Answer the following:

1. Discuss briefly what Merchandising Business is and provide examples.

________________________________________________________________________________________________________
________________________________________________________________________________________________________
________________________________________________________________________________________________________

PRACTICE TASK 3

Direction: Answer the following:

1. Discuss briefly what Manufacturing Business is and provide examples.

________________________________________________________________________________________________________
________________________________________________________________________________________________________
________________________________________________________________________________________________________

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Module 5 Types of Business According to Activities
POST-TEST
Directions: Identify if it is a service, merchandising, manufacturing business or hybrid:

____________________ 1. Provides services to customers

____________________ 2. Sells goods to customers
____________________ 3. Raw materials are available
____________________ 4. Goods to be sold are purchased from a supplier
____________________ 5. Goods to be sold are produced by the company itself
____________________ 6. Supplies are used, no goods to be sold
____________________ 7. Bakery
____________________ 8. Barber shop
____________________ 9. Cellphone store
____________________ 10. Abenson appliances

ASSIGNMENT

Identify the advantages and business requirements of Servicing, Merchandising and Manufacturing
Business.

________________________________________________________________________________________________________
________________________________________________________________________________________________________
________________________________________________________________________________________________________
________________________________________________________________________________________________________
________________________________________________________________________________________________________
________________________________________________________________________________________________________
________________________________________________________________________________________________________

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Module 5 Types of Business According to Activities